Woman pleads guilty in fraud case

Pamela M. Hass, 63, solicited money from widows, a church pastor and other individuals using various schemes that she said would return five to 20 times their original investment, said Assistant U.S. Attorney Daniel Graber.(Photo: Getty Images)

MADISON - A Tomahawk woman accused of taking $460,000 from 32 investors and using it for personal expenses pleaded guilty Monday in federal court to wire fraud and money laundering.

Pamela M. Hass, 63, solicited money from widows, a church pastor and other individuals using various schemes that she said would return five to 20 times their original investment, said Assistant U.S. Attorney Daniel Graber.

Between March 2007 and October 2013, Hass held herself out as an investment adviser and called her investment business “Influential Money” to sell securities and, under other business names, sold precious metals and real estate.

Hass met Pastor Ted Nelson while she was member of his Wausau church prayer group. Nelson invested $10,000 with Haas in July 2008, after she said she could turn his investment in Internet pop-up ads into $300,000 within months, plus earn a $100,000 bonus, said Graber.

Hass also guaranteed Nelson that she would return his $10,000 with 7 percent interest if she failed to earn him $300,000, Graber said. Hass also falsely told Nelson that she had made $787,000 on a $10,000 investment in Internet pop-up ads.

After several months without seeing any money from Hass, Nelson threatened to sue her and she eventually repaid him $12,000, said Graber.

Meanwhile, other investors were wiring Hass money to invest, some as much as $60,000, Graber said.

“These were widows and people who didn’t have that kind of money to lose,” Graber said.

Instead of investing it, Hass used their funds to pay off her loans, her mortgage and bills and her husband’s medical expenses, according to the 10-count Indictment issued in May.

To keep the scheme going, Hass began paying earlier investors from funds received from subsequent investors falsely telling them the same Internet ad pitch, which constituted money laundering, Graber said.

After Graber recited a narrative of the evidence the government had in the case, Hass told District Judge James Peterson that,” they could prove,” the charges against her.

Peterson continued Hass’ release on conditions under her Feb. 16 sentencing at which she faces maximum statutory penalties of 20 years in prison and $500,000 a forfeiture of $460,821.

After court Graber said Hass’ investors had collected a combined $44,000 from her and he expected some will want to address the court at Hass’ sentencing.

Hass was caught when her investors complained to the FBI about not getting their money back and the IRS opened a separate investigation into the scheme, said Graber.